Elon Musk, who left South Africa at 17 to seek fortune in North America, now commands a net worth of $468 billion. Thirty-five years later, South African President Cyril Ramaphosa is courting Musk, seeking investments from his vast business empire, particularly focusing on the Starlink expansion.
Musk, now a prominent political adviser to US President-elect Donald Trump, has a vested interest in his home country. He’s pressing Ramaphosa to amend a local Black ownership requirement that affects the operation of his Starlink satellite network in South Africa. Sources familiar with the situation say Ramaphosa and Musk have been in talks to adjust regulations, which would allow Starlink’s high-speed Internet service to legally operate in the country. In exchange, Musk’s companies may invest in areas like Tesla Inc.’s battery production in South Africa, further supporting Starlink expansion.
The discussions have intensified, especially as Musk assumes a more significant political role alongside Trump. This case illustrates the broader breakdown of global resistance to Musk’s satellite business. Even before his hefty investment of over $250 million helped Trump win the presidency, Starlink was expanding its reach, securing agreements country by country as part of its ever-growing Starlink expansion.
Where governments once feared Musk’s satellite network could undermine sensitive state-run telecommunications, they now view Musk’s ventures as lucrative opportunities. They are increasingly trying to leverage Musk’s investments for economic gains, furthering Starlink expansion.
A spokesperson for Ramaphosa confirmed that Starlink had been part of discussions concerning the review of policies around satellite-based technologies, with Ramaphosa keen to attract Musk’s business investments in South Africa, helping with the Starlink expansion in the region.
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Musk’s new political clout is making it harder for some nations to resist Starlink. Yet for places like Taiwan, which remain wary of Musk’s ties to China, his influence only stokes tensions. With Musk now making his presence felt on calls with foreign leaders, countries are grappling with whether to open their doors further to his expanding business empire, driven by Starlink expansion.
“Musk has the ear of the most powerful office in the world — the US president,” said Alex Capri, a senior lecturer at the National University of Singapore and author of Techno-Nationalism: How It’s Reshaping Trade, Geopolitics, and Society. For countries like South Africa, Capri explained, “the transactional value behind that — any kind of quid pro quo — becomes much more attractive.”
While SpaceX declined to comment, the trend is clear: governments that once blocked Starlink are now easing restrictions. In South Africa, a requirement for SpaceX to share 30% equity with Black partners has been a significant barrier. However, discussions are underway to bypass these ownership rules by offering alternative investments, like job creation, in return for access to the market.
South Africa’s telecommunications regulator, Icasa, warned against unauthorized Starlink use, issuing threats of hefty fines. But public demand for Starlink has skyrocketed, especially in rural and underserved areas, where Internet access remains unreliable.
This year alone, SpaceX has expanded into more than 20 countries, including Ghana and Argentina, bringing Starlink’s services to over 4 million people in 100+ countries and territories. The company’s technological advancements and aggressive business strategies have helped it leapfrog legacy telecom operators and rivals like Amazon and China.
Starlink’s fast-growing network — with approximately 7,000 satellites in orbit and more being launched every month — leaves competitors like Eutelsat OneWeb struggling to keep pace. Even though the company is dealing with growing pains, including supply shortages in cities like Nairobi, Lagos, London, and Mexico City, it continues to dominate the market.
In Ukraine, Starlink’s satellite network is being integrated into the country’s infrastructure to shield communications from Russian attacks, demonstrating the technology’s growing global relevance in even the most critical environments.
However, not all nations are embracing Starlink. Taiwan, for instance, is wary of Musk’s comments suggesting that Taiwan should become a “special administrative zone” of China. Taiwan has chosen to work with Starlink’s competitor OneWeb, though their defense minister acknowledged that current satellite options don’t fully meet military needs.
In Southeast Asia, Starlink’s entry into the Philippines came after the government eliminated local ownership rules for telecom operators, despite some opposition citing national security concerns related to Musk’s ties to China. Meanwhile, in Indonesia, Starlink’s service has been welcomed in remote areas like Bali, where schools and clinics benefit from the high-speed internet service.
In Latin America, Musk has used his influence to make inroads with Argentina. President Javier Milei, an ally of Trump, quickly scrapped regulations that prevented Starlink’s entry, with Musk signaling interest in investment. However, tangible economic gains for Argentina’s crisis-ridden economy have yet to materialize.
Starlink’s rapid expansion, bolstered by Musk’s political connections, has drawn backlash from competitors. Safaricom, Kenya’s largest mobile operator, lodged a formal complaint, arguing that Starlink should comply with the same rules as local telecom operators. Critics have also raised concerns about security risks due to Starlink’s lack of a local gateway, which makes it harder for governments to control access.
Despite these concerns, Starlink’s appeal continues to grow. In Murang’a, Kenya, local authorities purchased Starlink equipment to connect dozens of health centers in rural areas. The service is faster and cheaper than local providers, offering an alternative to years of poor connectivity.
Musk’s political influence is undeniably shaping Starlink’s future. Whether governments embrace Starlink for its potential to revolutionize connectivity or resist its reach due to geopolitical concerns, one thing is clear: Elon Musk is cementing his power on a global scale through the Starlink expansion.
